$COIN: Will Coinbase’s valuation always be linked to Crypto prices?

Will the value of Coinbase, a principal cryptocurrency exchange platform, company always be inextricably linked to the price and current health of the cryptocurrency markets?

$COIN went public on April 14, 2021 at $342, and has since (as of April 3rd, 2022) decreased 45% to $186.96.

At the same time, cryptocurrencies from Bitcoin to Ethereum have gone up and down, with Bitcoin decreasing in value around 20% while Ethereum has increased by 68%.

Bitcoin is indisputably the most mainstream cryptocurrency, of the bunch – which brings me to wonder: will the price of $COIN always be intrinsically linked to the performance of Bitcoin – and/or cryptocurrencies at large?

As more people invest in crypto, so to do people become more invested in crypto-adjacent companies, products, and influence(rs).

While people have become inundated with websites, apps, and instagram pages vying for the beginner crypto investor’s money, I will credit Coinbase with being one of the most user-friendly platforms. It’s not only an exchange platform, but also a de-facto learning platform of sorts for certain cryptocurrencies with their Learn platform.

Coinbase attracted a lot of attention when it IPO’d, due in part to the fact that it was one of the first companies of it’s kind (a company solely based on cryptocurrencies) to IPO. Coinbase’ IPO was a way of meshing the unconventional financial world with the conventional – get a piece of the crypto pie in your investment portfolio.

But does Coinbase’ proximity to the crypto craze contribute to the hype of the stock price? Is the business model differentiated enough, in the world of endless crypto apps (and the ability to buy crypto on Paypal, Cash app, Robinhood), mean that Coinbase has a sustainable business model?

For now, we’ll have to wait and see what the next year brings for $COIN performance. For now, happy almost-one-year-anniversary to a revolutionary IPO!

For now, if you’re interested in checking out and investing on Coinbase, use my link and we both get $10 in Bitcoin! Click here: https://coinbase.com/join/montgo_qe?src=ios-link

Published by Grace

Passionate about personal finance and helping people take control of their finances.

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